Natural Gas Bill Projections Expected To Be 4 To 6% Lower

Vectren Energy Delivery of Indiana – South (Vectren) announced today customers should expect a decrease of 4 to 6 percent in their natural gas bills when compared to those of last winter, assuming normal winter weather year-over-year. Natural gas prices continue to be low and stable, which is helping customers’ bill amounts to remain affordable.

Last winter was slightly warmer than normal, which caused bills to be lower than projected. This year, based upon expected natural gas commodity costs and normal winter weather, customers can expect to pay $385 to $395 over the 5-month heating season of November through March based on the average household consumption of approximately 535 therms. By comparison, last year’s average bill amount for the 5-month period, had weather been normal, would have been around $410.

“While we did experience colder-than-normal temperatures in December and January, overall last winter brought fairly normal weather to our area. In the event we experience normal winter weather this heating season, coupled with stable gas prices, customers should see a decrease in their bills,” said Brad Ellsworth, president of Vectren Energy Delivery of Indiana – South.

The Energy Information Administration continues to recognize natural gas as the most affordable heating source. In fact, Vectren gas customers who heated their homes with natural gas last year saved up to $865 compared to those who heat with propane.

While customers can expect continued low, stable natural gas pricing for years to come, Vectren encourages customers to still implement energy efficiency measures and find ways to use less natural gas to lower bills even further. It is important to remember bills will vary by customer depending on the size and age of the home, number of gas appliances, number in the household, thermostat settings and levels of insulation.

Vectren has in place a number of tools to help customers manage their energy bills.

Budget Bill: Under this billing plan, a customer’s estimated costs for a year of gas service are spread in equal monthly bill amounts for the year. This leveling of monthly bill amounts reduces the need to pay the full amount in the winter and spreads some of those higher bill charges into the non-heating months. Amounts are adjusted each summer for actual costs, and the customer’s credit or amount due rolls into the next Budget Bill payment for the next 12-month period. A mid-winter recalculation may occur for some customers if gas costs significantly change during the heating season. Customers can enroll for free at www.vectren.com or by calling 1-800-227-1376.

Energy Assistance Program (EAP): State and federal utility assistance dollars are available for income-eligible customers. Those that fall within 60 percent of state median income should visit their local community action agency to sign up for the EAP. To apply for the EAP, customers should call 1-800-872-0371 to locate their nearest community action agency. Community action agencies will begin taking applications for all energy assistance programs on Nov. 1.

Universal Service Program (USP): All eligible natural gas heating customers who apply and qualify for EAP will automatically be enrolled in the Universal Service Program (USP), which provides additional gas bill reductions that range from 15 to 32 percent of the total bill received (not including EAP benefits) in the months of December through May. The USP, which has been in place since 2005 is the result of a collaborative effort by Vectren, Citizens Energy Group, the Indiana Office of Utility Consumer Counselor, Citizens Action Coalition and a group representing industrial customers. The program provides about $1.5 million in assistance each year to roughly 18,000 Vectren Indiana customers, including crisis assistance dollars, which target qualified low-income and working-poor households that need additional help to get reconnected and/or maintain heat throughout the upcoming winter.

Share the Warmth: Those wanting to help the less fortunate with their energy bills can contribute to Share the Warmth, a nonprofit organization that assists income-eligible customers with home weatherization services. Each year, Vectren matches all public donations, up to an annual total of $225,000. Donations may be tax-deductible and can be sent to Share the Warmth, P.O. Box 931, Evansville, IN 47706-0931 or visit www.sharethewarmthinc.com. Customers who pay their bills at Vectren.com may donate through a bill round-up feature. In 2017, more than 110,000 customers across all Vectren territories used this feature to direct donations to Share the Warmth. This option contributed nearly $104,000, which was matched by Vectren.

“Vectren encourages customers to make contact if they are experiencing financial hardship and get behind on payments or are in need of financial assistance, as there are several options to help customers manage costs” said Ellsworth. “Local community action agencies can further provide assistance and customers should call today and apply for financial and/or home weatherization assistance if needed.”

Vectren utilities are not allowed to markup, nor profit, from the purchase and sale of natural gas. Only gas costs actually incurred and approved by the Indiana Utility Regulatory Commission are recovered from customers.

Natural gas is a commodity bought and sold in a national deregulated market and prices fluctuate daily due to supply and demand pressures. Vectren purchases natural gas on behalf of its customers and then passes those costs on to customers through the gas cost adjustment, which is listed on the Vectren bill as “Gas Cost Charge.”